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FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Lemur Corp. is going to pay three employees a year-end bonus. The amount of the year-end bonus and the amount of federal income tax withholding are as follows. Federal Gross Income Employee Filing Status Allowances Income Withholding Sarah Married 4 $10,000 $962 $8,000 $1,362 Single Kevin Single $7,000 $357 Lemur's payroll deductions include FICA Social Security at 6.2%, FICA Medicare at 1.45%, FUTA at 0.6%, SUTA at 5.4%, federal income tax as previously shown, state income tax at 5% of gross pay, and 401(k) employee contributions at 2% of gross pay Record the entry for the employee payroll on December 31. If required, round your answers to the nearest whole dollar. If an amount box does not require an entry, leave it blank. Dec. 31 Salaries Expense 25,000 ✓ Joe 1 ✓ FICA Social Security Tax Payable ✔ FICA Medicare Tax Payable Federal Income Tax Payable State Income Tax Payable 401(k) Retirement Plan Payable ✓ Salaries Payable V ✓ ✓ ✓ 2,681 ✓ 1,250 500 1,550 363
Transcribed Image Text:Lemur Corp. is going to pay three employees a year-end bonus. The amount of the year-end bonus and the amount of federal income tax withholding are as follows. Federal Gross Income Employee Filing Status Allowances Income Withholding Sarah Married 4 $10,000 $962 $8,000 $1,362 Single Kevin Single $7,000 $357 Lemur's payroll deductions include FICA Social Security at 6.2%, FICA Medicare at 1.45%, FUTA at 0.6%, SUTA at 5.4%, federal income tax as previously shown, state income tax at 5% of gross pay, and 401(k) employee contributions at 2% of gross pay Record the entry for the employee payroll on December 31. If required, round your answers to the nearest whole dollar. If an amount box does not require an entry, leave it blank. Dec. 31 Salaries Expense 25,000 ✓ Joe 1 ✓ FICA Social Security Tax Payable ✔ FICA Medicare Tax Payable Federal Income Tax Payable State Income Tax Payable 401(k) Retirement Plan Payable ✓ Salaries Payable V ✓ ✓ ✓ 2,681 ✓ 1,250 500 1,550 363
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